Credit Score and Divorce

Divorce is a legal declaration of the failure of both husband and wife to resolve their differences resulting the severance of matrimony. How in the world is credit related to divorce? That is a question will be answered by this article. Moreso this article will endeavor to provide tips and techniques on how to protect your credit after divorce.

With the possible exception of a pre nuptial agreement, marriage is an act that links a man and a woman together physically, emotionally and financially. And even with a pre nuptial agreement, a married couple seldom has a 100% separation of property. It is very common for a married couple to have the same bank account, credit cards, debit cards, etc or at the very least an account will become a joint account. Some married couples will also find it romantic, if not necessary to co own their home, in some cases it will even be presumed by law.

All these will lead to debts, and in some cases debts on installment basis. Now let us say in the middle of all that debt divorce proceeding ensues and the couple separates. One couple may empty another’s account, or the other may not want to pay the goods or services bought using the credit card of the other, or worst, one may no longer want to provide down payment for a property co-owned by them such as a car or a house.

If one or both parties have enough money, well and good but if not then here tips and techniques on how to protect your credit after divorce:

• Include in the divorce proceedings a court order for a payment plan on goods and services co owned by both parties to ensure that both parties continue making payments or one party releases another from payment in exchange for the sole ownership.
• Include in the divorce proceedings goods and services bought by another using the credit card of the other to ensure that the actual buyer pays for the purchase.
• Close joint credit and debit cards as soon as divorce proceedings starts or at the very latest upon the decree of separation to minimize retaliatory spending by one against the other.
• Get a copy of your credit report and scrutinize the purchase for any missed items that you are paying for but bought by the other to make sure that everything is accounted for.
• Separate co-owned properties especially one’s that regularly incur expenses such as a business or a vacation home especially if it is still being paid for.

In sum, the best tip on how to protect your credit after divorce is to prepare everything during the divorce proceeding to ensure that anything that is co-owned is separated but as to title and as to payment then make sure that you are not paying for anything the other should be.